Business, 28.12.2019 00:31 cailynrachael
The short-run cost function of a company is given by the equation tcequals200plus55q, where tc is the total cost and q is the total quantity of output.
a. the fixed cost of production is $ 200. (enter your response as an integer.)
b. if the company produces 100 units of goods, the average variable cost is $ 55. (enter your response as an integer.)
c. the marginal cost of production would be $ 55. (enter your response as an integer.)
d. the average fixed cost of production would be $ 2. (enter your response rounded to two decimal places.)
e. suppose the company borrows money and expands its factory. its fixed costs rise by $50, but its variable costs fall by $30 per unit. the cost of interest (i) also enters into the equation. each 1-point increase in the interest rate raises costs by $5. write the new cost equation. the new cost equation is
Answers: 1
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The short-run cost function of a company is given by the equation tcequals200plus55q, where tc is th...
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